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DymaMotive Technologies Suspends Further Conversions

6 October 1998

DymaMotive Technologies Suspends Further Conversions of Convertible Debentures

    VANCOUVER, Oct. 5 /CNW-PRN/ - DynaMotive Technologies Corporation
today announced that it has suspended all conversions of
Convertible Debentures pending a review by a special committee of the
Company's Board of Directors of recent trading activity in the common shares
of the Company. This action stems from concern that there may have been an
orchestrated manipulation of the market for DynaMotive's common stock which
has artificially depressed the stock price for the purpose of enabling holders
of Convertible Debentures to convert at significantly reduced prices, and the
need to comply with NASD regulations prior to the issuance of any further
securities. There have been no adverse developments in the business of the
Company which would account for the dramatic drop in the Company's stock
price.
    In order to address these concerns, the Company's Board of Directors has
formed a special committee to review certain trading activity in the common
shares of the Company. This committee has been specifically directed to review
the conduct of all parties and report all trading activity it suspects to be
manipulative or abusive, and to make recommendations as to the course of
action to be taken by the Company prior to the holding of a shareholders
meeting, including requesting a review of the trading activity by the
Securities and Exchange Commission (SEC) and NASDAQ.

    On behalf of the Board,

    Bayne Boyes
    President and Chief Executive Officer